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For immediate release: April 7, 2017
Coal miner digs himself a hole in fraud scheme
COLUMBUS - A former coal miner from northeast Ohio owes the Ohio Bureau of Workers' Compensation (BWC) more than $40,000 after BWC investigators found him creating phony employment records to secure BWC cash benefits.
Steven R. Kornbau, 50, of Mahoning County, pleaded guilty March 28 to a fifth-degree felony charge of workers' compensation fraud in the Franklin County Court of Common Pleas. A judge ordered Kornbau to reimburse BWC $40,514 and sentenced him to six months in jail, which he then suspended for five years of community control.
"As Mr. Kornbau's case shows, some people get creative in trying to cheat the workers' compensation system" said BWC Administrator/CEO Sarah Morrison. "But that's no match for our investigators and claims personnel who are trained to detect suspicious claims and stop fraud when they see it. The funds we recover from this case will return to where they belong - taking care of injured workers and creating safe workplaces across this state."
Kornbau's case centers around "working wage-loss benefits" he received from Dec. 1, 2014 until April 2, 2016. These benefits are designed to make up the difference in wages between the injured worker's job at the time of injury and the job following recovery if it pays less.
Kornbau, a coal miner when he was injured in 2009, was supposed to be working, or at least actively looking for work, to receive the benefits. Instead, Kornbau created a fictitious company called Anderson's Windows and Doors and submitted phony payroll records to BWC as evidence he was working. BWC staff noticed inconsistencies in the records in the summer of 2015 and contacted the agency's Special Investigations Department.
Investigators quickly determined the company was fake, and Kornbau confessed as much during questioning.
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